Kelly Jones and Tami Crawford borrowed $15,000 on a 7‐month, 8% note from Gem State Bank to open their business, JC's Coffee House. The money was borrowed on June 1, 2017, and the note matures January 1, 2018. (a) Prepare the entry to record the receipt of the funds from the loan. (b) Prepare the entry to accrue the interest on June 30. (c) Assuming adjusting entries are made at the end of each month, determine the balance in the Interest Payable account at December 31, 2017. (d) Prepare the entry required on January 1, 2018, when the loan is paid back.

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GuilhermeSouzaS GuilhermeSouzaS · Answer 1 · 2019-12-26T19:47:53+01:00

Answer: Your correct answer is

a. DR- Cash/Bank - $15,000

CR - Notes Payable - $15,000

b. DR - Interest Expenses - $100 ($15000*0.08*1/12)

CR - Interest Payable - $100 ($15000*0.08*1/12)

c. DR - Interest Expenses - $700 ($15000*0.08*1/12*7)

CR - Interest Payable - $700 ($15000*0.08*1/12*7)

d. DR - Note Payable - $15,000

DR - Interest Payable - $700

CR - Cash/Bank - $15,700

Hope this helps :) -Mark Brainiest Please :)

Tundexi Tundexi · Answer 2 · 2022-01-21T14:43:47+01:00

a. Date Account titles Debit Credit

1-June-17 Cash $15,000

Notes Payable $15,000

b. Date Account titles Debit Credit

30-June-17 Interest Expenses $100

($15000*0.08*1/12)

Interest Payable $100

c. Date Account titles Debit Credit

1-1-18 Interest Expenses $700

($15000*0.08*1/12*7)

Interest Payable $700

d. Date Account titles Debit Credit

1-1-18 Note Payable $15,000

Interest Payable $700

Cash/Bank $15,700